Without Ted's Knowledge, Phil, Who Frequently Purchased Lumber on Ted's

question 40

True/False

Without Ted's knowledge, Phil, who frequently purchased lumber on Ted's behalf, purchased a large quantity of plywood from Chris as agent for Ted. Phil later advised Ted of the purchase. If Ted wished to ratify the agreement, the act of ratification would make the agreement effective as of the date that it was negotiated by Phil.

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Definitions:

Market Value Per Share

The current price at which a company's stock is trading on the open market.

Equipment

Tangible assets used in operations, such as machinery or tools, which play a crucial role in the production or service process.

Rights Offering

A corporate issuance of rights to current shareholders allowing them to purchase additional shares directly from the company at a discount to the current market price.

Subscription Price

The cost that must be paid by subscribers to purchase or subscribe to a service, investment, or product.